Tax Incentives for Overseas Pakistanis: FBR’s New Policy

FBR Grants Tax Incentives to Overseas Pakistanis: What It Means for Real Estate Buyers

 

The Federal Board of Revenue (FBR) has started a series of tax incentives. It is crafted for overseas Pakistanis, to spark their interest in the country's real estate market. The purpose of this initiative is to enhance the investments. It also offers lucrative opportunities for expatriates who want to gain profit from Pakistan's growing property sector. This policy is a game-changer for real estate buyers, particularly overseas investors can take advantage of it.

Why Overseas Pakistanis Favor Real Estate Investments?

Real estate investment has always been the top choice for overseas Pakistanis. It is considered the most stable investment that offers high returns and consistent passive income. These FBR's tax incentives provide tax benefits for expats to increase returns. Moreover, they restore investors' interests and contribute to Pakistan's economic growth.

Estatex.com sets standards high for modern living by establishing innovative projects such as Urban Heights and Urban Enclave. The vision behind these projects is to provide modern living at affordable prices. However, they cater to the modern-day buyer while trying to capitalize on rising demand in Pakistan for tax-beneficial property holdings.

What Expats Need to Know About FBR’s Tax Relief

FBR's tax incentives aim to encourage overseas Pakistanis to invest in the real estate industry. FBR grants huge tax exemptions under Sections 236C (Advance tax on the Seller) and 236K (Advance tax on the Buyer) of the Income Tax Ordinance, 2001. They are also not mentioned in the Active Taxpayers List (ATL). The removal of a 3% tax on overseas buyers and a 3% tax on overseas sellers attracts a large number of non-residents to invest in the country. 

This initiative has been made to cover all overseas Pakistanis who are eligible can invest easily in the country. It will be implemented across all tax offices, including Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs).

“This new system represents a significant step forward in facilitating overseas Pakistanis. The verification process has been designed to ensure minimal delays for applicants,” said a senior officer of FBR

This can be noted as the following:

• Eligibility

In the latest notification, FBR declares under Clause 111AC of the ordinance that those who are not residents of Pakistan but have valid National ID Cards for Overseas Pakistanis (NICOP) or Pakistan Origin Cards (POC) are eligible for this relief.

• Ease of Process

FBR now simplified procedures for verifying overseas income sources by providing a digital verification system. The online income tax return portal (IRIS) is specifically for the exemption procedure. The applicant has to upload his details on this portal for verification. Furthermore, this whole process will be completed within only one business day. After the final approval of the Chief Commissioners and Commissioners of Inland Revenue, the applicant will be notified via SMS or Email. 

• Tax Savings

FBR reduced capital gains tax and exemptions on specific property transactions. This policy increases the attractiveness of Pakistan's real estate market and removes bureaucratic hurdles for overseas Pakistanis. It ensures tax benefits for expats and promotes investment in high-potential areas.

Why Invest in Pakistan's Real Estate Market?

The Pakistani real estate sector continues to remain an unchallenged platform for potential growth. The FBR's tax relief and benefits to foreign investors coincide with Pakistan's market pattern, ensuring more profitable acquisition of property.

It shows how the FBR incentives help overseas investors to make good investments in top-notch projects.

Top Advantages of Property Investment in Pakistan

1. Capital Appreciation: In areas like Bahria Town Lahore, and Raiwind Road Lahore properties only go upwards in terms of value appreciation.
2. Rental Income: Rental income for apartments, shops, villas and townhouses is beneficial and offers continuous passive income.
3. Long-term Stability: Real estate provides a shield against inflation and currency fluctuations. As John Paulson says:

“If you don’t own a home, buy one. If you own a home, buy another one. If you own two homes, buy a third.” 

According to these factors, projects like Urban Heights and Urban Enclave are perfect investment opportunities for overseas Pakistanis. They can take advantage of incentives while securing their future financially.

Perfect Properties for Overseas Pakistanis

• Urban Heights: Apartments & Shops in Bahria Town

Urban Heights is located in the heart of Bahria Town, offering modern studio, 1, 2 bed and serviced apartments and commercial spaces. These profitable options are suitable for diverse investment needs.

Urban Heights provides easy access to major landmarks and thriving commercial zones. Such as it is adjacent to Raiwind Road, Defence Road, and Lahore Ring Road. Moreover, it offers a 1 min drive from Bahria Hospital and Safari Villas, a 2 min drive from Jamia Mosque and Ring Road, and a 3 min drive from the Eiffel Tower.

State-of-the-art facilities enhance comfort and appeal. Such as a rooftop garden, gym, CCTV security, maintenance staff, sewerage & water supply, dedicated car parking, broadband internet access, Bahria International Hospital, grand Jamia mosque, nearby Eiffel Tower, beautiful Interior, and 24/7 electricity supply. 

Ideal for gaining high rental income and high-value appreciation. Being one of the finest locations along with impressive features, Urban Heights is among the wise choices for investors looking forward to tax-friendly investments in real estate.

• Urban Enclave: Villas & Townhouses on Raiwind Road

Urban Enclave is situated in the heart of Raiwind Road Lahore adjacent to OPF Green Farms Housing Scheme. It builds on the vision of live green, live smart. It redefines community living with its safe, family-friendly environment. The project offers a number of different properties, like 3 and 4-bed villas and 2-bed townhouses that cater to different budgets and preferences.

It offers easy convenience to top areas and arterial roads through Thokar Niaz Baig. Moreover, it is a 2-minute drive from Ring Road and Adda plot Raiwind Road, a 3-minute drive from Superior University, a 10-minute drive from Thokar Niaz Baig, and a 20-minute drive from Allama Iqbal International Airport.

Urban Enclave provides top-notch facilities such as green spaces, an urban club, underground electricity, 24/7 power backup, CCTV security, a gymnasium, a swimming pool, playgrounds for children, a mosque, indoor sports, nearby educational institutes, and nearby healthcare facilities. 

A peaceful environment with lush green parks, international educational institutes, and recreational zones. From budget-friendly villas to premium townhouses, it offers vast opportunities for everyone. These villas and townhouses are ideal for long-term residence or lucrative rentals. Urban Enclave perfectly complements the incentives provided by the FBR, offering overseas Pakistanis a chance to invest in a secure, high-growth property.

Wrapping Thoughts

In a nutshell, tax benefits in the FBR have made unmatched opportunities for overseas Pakistanis through investments in Pakistan's robust real estate industry. Under the roof of Urban Heights and Urban Enclave developments, Apex Group provides benefits in real estate that truly help to gain returns.

Take advantage of these tax-friendly policies today. Explore Urban Heights and Urban Enclave to secure your future and contribute to Pakistan's growth. Learn more about our projects and how you can benefit from tax incentives now!